Episode Transcript
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(00:00):
Welcome to the Deep dive. Today, we're jumping into the
electrifying world of global football.
Yeah, specifically looking at a recent tournament that honestly
was about way more than just theaction on the pitch.
Exactly. Think about this, a club, quite
a small one actually, pulling inmaybe what, USD 600,000 a year
in revenue, suddenly gets a check for USD 4.6 million from
(00:24):
playing in just one competition.And that's not a hypothetical,
is it? That actually happened with the
expanded Chief of Club World. Cup it did, and it's just what
one really fascinating example of how this whole event is
shaking up the money side of things and the global spotlight
for clubs worldwide. It's a fantastic case study,
really. So our mission today for this
deep dive is to unpack those incredible numbers, but also the
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stories behind them. Yeah, to show you how this
competition is already shapping the future of club.
Football. Exactly.
We want to reveal who's really benefiting the most, and maybe
in ways you wouldn't immediatelyexpect.
It's not just the usual suspects.
OK, let's dive right in with themoney then, because the headline
figure is just. Huge.
It really is. We're talking Ausd 1 billion
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prize pool, 1 billion just allocated for this tournament.
That figure alone is, well, colossal for a club competition.
It really sets a new benchmark. It does, but how did they
actually carve up that massive pot?
It wasn't just like winner gets everything right.
No, and that's where it gets interesting.
The distribution model they used, it had this kind of dual
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incentive built in. OK.
So a really big chunk, 52.5% of that billion was just for
participation. Just for qualifying and turning
up. Pretty much it.
Think of it like a guaranteed baseline payment than the rest
the other 47.5% that was based on sporting performance.
So how well you actually did in the game?
Exactly how far you progressed. So it meant every single club
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walked away with something substantial, but there was still
that extra drive to, you know, perform well on the field.
Right, makes sense. And I guess unsurprisingly, the
big European names, the established giants, they walked
away at the biggest absolute amounts.
Predictably, yes. If you look at the raw numbers,
Chelsea for instance, they took home an incredible USDA 114.7
million. Wow.
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And Paris Saint Germain? They weren't far off either,
pocketing USD 107 million. Those are staggering sums, even
for clubs that are already incredibly wealthy.
Absolutely. What does that tell us about how
lucrative this tournament is even for them?
Especially maybe if we look at it per match.
Well, that per match breakdown really underlines the financial
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plot. If you look at Chelsea
connecting it back, they earn something like USD 16.4 million
per game played in this tournament. 16,000,000 per game.
Per game and PSG around USD 15.3million per game.
Now here's the kicker. OK.
For both of them, those per match earnings were actually
higher, significantly higher than what they pulled in per
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match during their Champions League campaigns that same
season. Higher than the Champions
League. Yeah, where they're earning, you
know, maybe around USD 10 million per match.
So it just shows, even for the absolute elite, this Club World
Cup is a major new revenue stream.
It's not just pocket change. That's a really powerful
comparison. OK, so the rich got richer, in
absolute terms anyway. Yes, that's fair to say.
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But I have a feeling, and this is what really grabs me, that
the relative impact, the proportional boost was maybe
even more significant for clubs operating on much smaller
budgets. Is that right?
Is this where the story gets sort of?
Deeper. That's exactly it.
This is where the money stops being just additive and becomes
genuinely transformational. Transformational how?
Well for a lot of the non European clubs these payouts
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were frankly life changing. Take the African clubs who
participated. Someone like Why Dad right?
The minimum they received was USD 9.6 million. 9.6 million And
how does that compare to their usual continental competition?
Well, that single payout is morethan double the top prize
available in the C CAF ChampionsLeague, which is, you know, the
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premier club competition in Africa.
Double the top prize just for participating here.
Exactly. And it's a similar story in
CONCACAF North and Central America, a club like Pachuca.
Their USD 9.6 million payout completely dwarfed the USD 5
million ceiling for winning their region's Champions Cup.
So for these clubs, it's not just a nice bonus payment, it's
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a fundamental shift in their financial power.
Absolutely. It changes their entire
financial landscape overnight. And then there's that example
you mentioned right at the start, the one that really
stands out, Auckland City FC. Yes, Auckland City, that's
probably the most striking case.Their payout was what, USD 4.6
million? Correct.
And you compare that to their most recently reported annual
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revenue, which was around USD 600,000.
So the payout was nearly eight times their entire yearly
income. 8 times from one tournament appearance.
You can just imagine what that means for a club of that size.
It's not just helpful, it's potentially revolutionary for
them. So what does that kind of cash
injection actually enable for a club like Auckland City?
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I mean beyond just paying the bills.
Oh, it's huge. Strategically, we're talking
about future investments they could never have dreamed of
before. Like what?
Well, maybe building a proper, state-of-the-art youth Academy
to develop local talent. OR perhaps expanding their
scouting network significantly, finding players they couldn't
previously reach. Or even just keeping hold of
their best players. Exactly.
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Resisting bids from bigger clubsin their region or even further
afield. It gives them a fighting chance
to build something sustainable. So a single appearance that one
payout could genuinely alter thecompetitive balance within their
own lead, maybe even their continent for years.
Potentially, yes. It's not just about survival
anymore. It's about growth, about raising
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their entire level of operation.It's a proper strategic game
changer. OK.
So the financial impact is undeniable, especially that
relative boost for the smaller clubs.
But you mentioned visibility too.
Money isn't the only thing they gained here, is it?
Not at all and you could argue the exposure might be just as
valuable, maybe even more so in the long run, particularly for
these non UEFA clubs. How so?
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Well, think about brand building.
This tournament put clubs on a global state that they simply
wouldn't normally access. And we have data on that.
We do. Let's go back to Auckland City
again. They're a perfect example.
Their social media following across all platforms grew by
over 700%. 700% just from this one tournament.
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Just as a direct result of participating.
Imagine that leap. You go from having maybe a
dedicated local following and some niche international
interest to suddenly having potentially millions of eyes on
you globally. That's incredible, that kind of
visibility. You can't easily buy that.
Exactly. It's invaluable for attracting
new fans, obviously, but also sponsors, potentially even
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players who might not have considered them before.
It puts them on the map in a totally new way.
And was Auckland City an outlieror was this a broader trend for
the non European clubs? Oh, it was definitely broader.
If you look at the data for the clubs with the biggest
percentage increases in social media followers during the
tournament, Yeah, Of the top 12 clubs by percentage growth, 10
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of them were from outside Europe. 10 out of 12. 10 out of
12, yeah. So that really hammers home the
point, doesn't it? This expanded format offered
this rare, massive visibility boost specifically for clubs
from continents like Oceania, Africa, Asia, North America.
Places where clubs don't usuallyget that kind of sustained
global media attention. Precisely.
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It allows them to build their brand, connect with new
audiences, audiences who franklymight never have even heard of
them before this tournament. It's genuinely opening up the
global stage. So you've got this injection of
capital which is disproportionately impactful for
smaller clubs, and then this massive surge in global exposure
happening at the same time. Yes, it's a powerful
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combination. And the implications of that,
How might that start to reshape things?
Well, you could see how it couldreally influence investment
decisions, can't you? Not just within the clubs
themselves, but maybe even attracting external investment
into those clubs or leagues. And potentially shift the
competitive balance. Potentially, yes.
Yes, clubs that were historically unable to compete
financially on a bigger stage now have, well, a springboard.
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It might not just lift the individual club, but could
elevate the profile and competitiveness of their entire
domestic league overtime. Interesting now there was also
talk about a solidarity payment.Wasn't there something FIFA was
aiming for? Yes, that's right, FIFA has set
a target of around USD 250 million for a one off solidarity
payment linked to this tournament intended for clubs
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that didn't participate. OK, 250 million.
How does that stack up? How do we put that number in
context? Well, one comparison point is
UEFA, European football's governing body, they expect to
distribute roughly you are 308 million, that's about USD 360
million annually in solidarity payments to non participating
clubs over their current cycle 2024 to 2027.
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So 360 million per year from UEFA versus A1 off 250 million
target from FIFA for this specific expanded Club World
Cup. Exactly.
It highlights a pretty significant difference in
approach doesn't. It it really does, what's the
significance of that difference,one off versus ongoing?
Well, it raises interesting questions about the best way to
support the wider football ecosystem.
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That large one off sum from the Club World Cup could be a
massive catalyst for certain clubs or projects.
You know, a big injection for a new training ground, maybe a.
Sudden boost. Right.
Whereas the consistent annual payments like Uefa's model, they
potentially offer more stabilityfor long term planning,
grassroots development, sustained growth in smaller
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leagues, perhaps it's a reliablefoundation year after year.
So different philosophies really.
One providing a potential rocketboost, the other providing
steady fuel. That's a good way to put it.
Both have value, but they aim for slightly different kinds of
impact, high impact, rapid change versus sustained
incremental development. And it's worth considering which
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model, or perhaps what blend, best, serves global football's
health long term. OK, so wrapping this up as we
sort of step back from all thesedetails from our deep dive
today, what are the main takeaways from this expanded
FIFA Club World Cup? I think it boils down to that
dual impact we've discussed, firstly, obviously the huge
financial injections for the clubs that took part.
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Especially that relative impact for the smaller teams.
Crucially, yes, the money meant far more proportionally to an
Auckland City or AY dad than even the huge sums did to a
Chelsea or PSG. Right.
And the second part. The second part is that
incredible, unparalleled global exposure.
It's fundamentally reshaping howthese clubs are seen, how big
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their brand is and who they can reach.
So it feels like this isn't justa story about the established
giants consolidating their powerwith more cash.
No, I don't think it is solely. There's a genuine element of
rebalancing opportunity here. It's bringing clubs from
literally every corner of the footballing world onto the
mainstage, giving them resourcesand visibility they simply
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couldn't access before on the scale.
It really does feel like a potential shift, which leads us
to the big question, I suppose, looking forward, given these
really dramatic financial shiftsin this explosion and exposure,
what does this actually mean forthe future, for the global power
dynamics in football? That's the multibillion dollar
question, isn't it? Could we genuinely see a new
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wave of, say, regional powerhouses emerging clubs from
Africa, Asia, CONCACAF, maybe Oceania starting to consistently
challenge the European and SouthAmerican dominance?
Or is the alternative that the established elite just use this
extra revenue to pull even further ahead?
They operate from an even higherfinancial baseline and the gap
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ultimately just widens despite these boosts for others.
It's fascinating to think about what really stands out to you,
our listener, about how one single tournament, albeit A
massively expanded 1, can send these kinds of ripples through
an entire global industry. Does it feel like a genuine
rebalancing act, or just rearranging the deck chairs on a
very expensive ship? Lots to ponder there.